Marketing Communications

PROMOTION – The 4th P

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Communication
 Communication is the transfer of information from
a sender to a receiver with the information being
understood by the receiver.

 Koontz & Weihrich

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Communication
 Derived from Latin word “Communis”
 Common ground of understanding
 Transference and understanding of meaning

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Elements of
Communication (5Ws)
 Who says? (Sender)
 What? (Message)
 How? (Channel)
 Whom? (Receiver)
 With what effects? (Response)

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Marketing Communication
 Marketing Communications are the means by
firms attempt to inform, persuade and
remind consumers – directly or indirectly,
about the products and brands they sell.
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Objectives of Communication
 Informing
 Persuading
 Reminding
 Reinforcing/reassurance
 Image building

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Structure of Communication
 Formal and informal communication
 Internal and external Communication
 Downward, upward and lateral communication
 Oral, written and non-verbal communication
 Direct and indirect communication
 Personal and non-personal communication

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Meaning of Promotion
(Marketing Communication)
 Promotion includes all the activities the company
undertakes to communicate and promote its
products to the target market (Kotler)
 Promotion is the elements in an organization’s
marketing mix that serves to inform, persuade, and
remind the market of a product and or the
organization selling it, in hope of influencing the
recipients feelings, beliefs or behavior (Stanton)

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Objectives of Promotion
 Informing
 Persuading
 Reminding
 Reinforcing/ ressurance
 Image building

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Role of Communication in
Marketing
 Informing
 Persuading
 Reminding
 Reassuring
 Image building

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Process of Marketing
Communication

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Components of Promotion Mix

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Advertising
 Advertising is any paid form of nonpersonal
presentation and promotion of ideas, goods or
services by an identified sponsor. (Kotler)
 Advertising is all activities involved in presenting
to an audience a non-personal, sponsor-
identified, paid-for message about a product or
an organization (Stanton).

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Features of Advertising
 Advertising involves cost
 Advertising has a message
 Advertising is non-personal
 Advertising has identified sponsor
 Advertising has objectives

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5 M’s of ADVERTISING

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Objectives of advertising
 Information
 Persuasion
 Reminder
 Reinforcement
 Image building
 Competition
 Help other promotional tools

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Importance of Advertising
 Information
 Brand loyalty
 Market share
 New segments
 Support other promotional tools
 Image
 Employment

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 Doing business without advertising is winking at a
girl in the dark, you know what you are doing,
but nobody else does.
 No one can escape from death, tax and adverting

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Advertising Media
 Indoor media
 Outdoor media
 Direct media
 Display media

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 ATL – Above the line
 BTL – Below the line

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Factors Affecting Selection of
Media
 Objectives of advertising
 Nature of product
 Cost/ budget
 Media coverage
 Nature of message
 Impact of media

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Personal Selling
 Personal selling is the personal communication of
information to persuade somebody to buy
something. (Santon)
 Personal selling is face to face interaction with one
or more perspective purchasers for the purpose of
making presentations, answering questions and
procuring orders. (Kotler)

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Importance of Personal Selling
 Two-way communication
 Persuasion
 Relationship building
 Non-selling functions

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Types of Personal Selling (based on location)

 Indoor selling
 Outdoor selling

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Types of Personal Selling (based on employer)

 Manufacturer’s salesperson
 Wholesaler’s salesperson
 Retailer’s salesperson

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 Missionary selling
 Technical selling
 Team selling

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Personal Selling Process (Indoor Selling)
 Draw attention
 Ascertain needs
 Presentation
 Meeting objections
 Closing the sale
 Additional sales

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Personal Selling Process (Outdoor Selling)
 Prospecting
 Pre-approach
 Approach
 Presentation
 Meeting objections
 Closing sale
 Follow-up

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Sales Promotion
 Sales promotion consists of diverse collection of
incentive tools, mostly short term, designed to
stimulate quicker and /or greater purchase of
particular products/services by consumers or the
trade. (Kotler)
 Sales promotion refers to demand-stimulating
devices designed to supplement advertising and
facilitate personal selling. (Stanton)

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Features of Sales Promotion
 Short term
 Incentives
 Quicker response
 Target audience: consumer, trade channels or sales
personnel

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Objectives of Sales Promotion
 Encourage greater purchase volume
 Attract new customers
 Introduce new products
 Carry and push new brands
 Increase inventories
 Attract new channel members
 Offset competitive promotion
 Better store display
 Motivate sales force
 Support new products

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Methods of Sales Promotion
 Consumer promotion
 Trade promotion
 Sales force promotion

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Methods of Consumer Promotion
 Free samples
 Coupons
 Rebates/money refund
 Premium (gifts)
 Price off
 Contest and prize
 Display and demonstration

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Methods of Trade Promotion
 Free goods
 Allowances
 Price-off
 Sales contest
 Gift items
 Credit facilities
 Trade show

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Methods of Sales-force Promotion
 Sales contest
 Trade show/conventions
 Gift items
 Promotional kits
 Bonus and commission

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Publicity
 Publicity is any communication about an
organization, its products or policies through the
media that is not paid for by the organization.
(Stanton)

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Features of Publicity
 Communication with public groups
 No identified sponsor
 Done through various media
 Free of cost
 High credibility
 Can be positive or negative

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Objectives of Publicity
 Announce new products
 Build interest in established
products
 Announce policies and performance
 Announce technological development
 Counter negative publicity

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Types of Publicity
 Personal communication
 Press conference
 News releases
 Feature articles
 Publications

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Public Relations
 Public relations involve a variety of programs
designed to promote and or protect a company’s
image or its individual products. (Kotler)
 Public relations is a management tool designed to
favorably influence attitudes towards an
organization, its products and its policies.
(Stanton)

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Objectives of Public Relations
 Announce new products
 Build interest in established products
 Announce policies and performance
 Announce technological development
 Maintain good relations with community
 Counter negative publicity

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Nature of Public Relations
 Media relations
• Personal communication
• News releases
• Feature articles
• Publications
 Public service activities
 Sponsorship of events
 Lobbying
 Exhibits and displays
 Problem solving

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Forms of Direct Marketing

Major forms of direct marketing:

 Face-to-face selling.
 Direct-mail marketing.
 Catalog marketing.
 Telemarketing.
 Direct-response TV marketing.
 Kiosk marketing.
 New digital technologies.
 Online marketing.
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Factors Affecting Promotion
Mix
 Promotion objectives
 Nature of product
 Nature of target market
 Stage of PLC
 Size of promotion budget
 Competitors promotion mix
 Government rules and regulations
 Promotion mix strategy

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Promotion strategies
 Pull and push strategies
 Personal and mass communication strategies
 Cooperative promotion strategies
 Online promotion strategies

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Thank you
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